EU Bans Exports of Diamonds to Russia

RAPAPORT… The European Union has prohibited exports of diamonds, jewelry and other luxury goods to Russia in response to the continued war in Ukraine.

Tuesday’s sanctions prohibit the “sale, supply, transfer or export” of a range of products to any person or entity in Russia or for use in Russia. These include rough and polished diamonds, various precious metals and stones, jewelry, and metal parts, so long as they have a value of EUR 300 ($330) or more.

While the EU also intensified its sanctions against certain Russian companies and people, it did not outlaw diamond purchases, for example from Alrosa.

However, the export ban raises questions about the transfer of rough around the world, such as the return of unsold rough to Alrosa following viewings in Antwerp, a market insider said on condition of anonymity. The industry is still investigating the legal impact.

The measures — the EU’s fourth sanctions package since Russia’s February invasion of Ukraine — follow a move by the US to ban imports of Russian diamonds. However, that rule only applies to rough mined in Russia or polished manufactured in Russia; imports of polished cut elsewhere from Russian rough remain legal.

Image: The EU parliament building in Brussels. (Shutterstock)